British employer confidence hits near-record lows with pay awards expected to trail inflation despite housing market resilience.
UK home asking prices increased 1.2% month-on-month in May, surpassing the typical 1.0% seasonal rise. The average two-year fixed mortgage rate fell to 5.18% from 5.42% in April, easing borrowing costs for buyers.
Annual prices remained 0.3% lower, while the number of homes for sale reached an 11-year high. Sales agreed lagged 4% behind year-ago levels, reflecting persistent market caution. Employer confidence, measured in a separate survey, stayed near record lows as cost management overshadowed growth priorities.
Planned pay awards of around 3% are set to fall short of inflation forecasts, adding pressure on household spending. The data precedes recent political developments, which may further influence economic sentiment.